SYNOPSIS
©️Confidential and Proprietary
Barbara Guth, Sagesse Holdings, LLC
We have so few choices when we engage in the subject of entrepreneurial investing, and I have never really understood why. How is it that we have arrived at a place where it is ok for inventors to have to sell out their technology or their company to receive some simple investment capital? Our inventors and visionaries have had to endure the VC (venture capital) investment approach for the last 70 years, and while it serves some, it does not serve so many others.
In fact, upon even deeper reflection and analysis, I have come to understand that it does not serve the big picture for any of us at all. The VC model is fantastic for an inventor who wants to build a company and sell quickly. However, if an inventor wants to earnestly build something of long-term value while staying private and sovereign, while also maintaining their right to self-determine their own future and that of their company, the VC model is not an ideal first choice. These rights are forfeited in the current model, and this has never sat well with me. The brilliant inventors and visionaries of our time have lost their freedom through the financial sector, and it is time for this to be rectified.
In my mind, it comes down to a question of respect for creation, or the respect for money. While both elements are critical for a new creation to get off the ground, somewhere honoring our creators and inventors got lost in the dust in the frenzy to get the highest return for investors. In defense of the VC industry, the rules were set long ago. They are just responding intelligently to the game that was set up back in 1919 when investor primacy became the way of the land. Legal precedence was set at that time and was seemingly never questioned again. Unfortunately, this policy represents an insidious seed that has been inadvertently hidden within the entrepreneurial sector, leading to deleterious implications and consequences for other sectors as well as national sovereignty. Add the concept of fiduciary responsibility to the mix, and we have an iron-clad system to ensure that the creator and inventor are forgotten. We have dishonored creation, and this needs to be dearly corrected if there is any hope of regaining our own personal and collective balance, let alone global economic stability. My intention, therefore, is to heal this wrong, and if my aim is true and I hit the mark, our systems can begin to organically realign themselves with a little collaboration from the rest of us.
When I started this journey, I initially chose to directly challenge the premise of the VC model from its inception itself regarding its values, its intentions, and the mechanism through which this occurs, while also holding the intention to protect our creators. As I reflected overall upon the financial sector from this mindset, a glaring hole in the landscape suddenly revealed itself as did its solution, and I was astonished that it hadn’t been addressed before.
I have since created a comprehensive model from that insight that theoretically draws a new line in the sand for creation. I designed “new infrastructure and scaffolding” in the entrepreneurial arena called the Sovereign Revenue Trust Entity® or SRTE®, which represents an institutionalized, patent-pending alternative to the VC model. The SRTE® is a new legal entity that enables a pooled revenue share, embodied with the inherent intention of prioritizing our creators. It will be blockchain-based. This entity will mirror the VC equity play, but it will lead to a very tailored approach for each inventor and their board to determine the terms that are most appropriate for them. It will in effect act as a “Chinese” wall to protect an inventor’s sovereignty.
Following the creation of the SRTE®, I subsequently began to reverse engineer the impacts on other players in the field and realized that every stakeholder could benefit from this new dynamic. Wow. I then continued to consider and rebalance the dynamics of other related sectors and realized that while it could positively impact every stakeholder, it could also astonishingly benefit other business sectors positively as well. For example, I have been able to create potentially new revenue stream opportunities through various potential JV collaborations between this platform and the insurance industry as well as the peacebuilding industry. The presence of the SRTE® along with the policy change I would like to address could create healthier dynamics between the healthcare and insurance industries in service to their patients.
Adding some final icing on the cake, by having intentionally created an institutionalized revenue play to counter these misaligned values, there is a potential additional effect regarding two market sectors, the VC sector, and the Stock Market. Coupled together, these sectors represent an approximately $40-50 trillion engine leading towards global instability by driving too much power into the hands of a few. By instead decentralizing power through the adoption of the SRTE® structure, we could co-create a potential pathway to stop feeding the beast of global monopoly and oligopoly through this enormous engine.
Therefore, my intention is to also directly engage policymakers on capitol hill to change these long-term destructive policies that have led to dangerous monopolistic dynamics and unbalanced global power dynamics, posing real risk to all of humanity. In doing so, this could also assist a realignment of the medical industry with the Hippocratic oath as it would no longer be corrupted by these same inappropriate and antiquated policies.
What has become clear to me is that the current trifecta of the VC model, investor primacy, and our definition of fiduciary responsibility has directly led to the corruption of every sector through the virus of entrepreneurial finance. Almost all innovation regardless of the sector passes through this process, and therefore, its corruptive influence impacts every sector it touches. I also see that if we could wisely work together to incentivize new behavioral shifts through a new trifecta of the SRTE®, policy change and a mindset shift from equity to inherent value through revenue shares, coupled with collaboration between various industries to incentivize a shift away from these old systems, we can step back towards freedom and stable ground, and away from the cliff of oligopoly. Together we can create a whole new engine that could lead us toward much better outcomes.
Regardless, I see a few key choice points approaching us that could enable a righting of humanity’s ship. We could begin to say no to the disrespect for creation, and for our inventors who bring forth that creation. Our inventors and visionaries could begin to say no to the old VC model that forces them to sell out. Investors could decide that they no longer want to participate in this antiquated mindset and the model that embodies that mindset, and no to supporting a system that potentially leads to the loss of personal freedom and national sovereignty. We could also begin to say yes to the engagement of the SRTE® model which holds creation as its priority to assist in realigning our values.
In some ways, the SRTE® effectively represents the exact string to pull in a ball of tightly knotted yarn. While I gently pulled on that string, the entire knot slowly and effortlessly dissolved before my eyes. This tiny innocuous little kernel combined with these other changes could potentially alter entire dynamics amongst huge industry engines in service to almost every sector. Through the introduction of the SRTE® platform, we have at least one more potential means to liberate ourselves on the table through the very financial system that has represented a key part of human enslavement for thousands of years. And it all begins with a decision to honor our inventors.
©️Confidential and Proprietary,
Barbara Guth, Sagesse Holdings, LLC